insurance policy

  

Definition

Formal contract-document issued by an insurance company to an insured. It (1) puts an indemnity cover into effect, (2) serves as a legal evidence of the insurance agreement, (3) sets out the exact terms on which the indemnity cover has been provided, and (4) states associated information such as the (a) specific risks and perils covered, (b) duration of coverage, (c) amount of premium, (d) mode of premium payment, and (e) deductibles, if any.

Use insurance policy in a sentence

  • Any time you will be taking on a risky venture it is important to take out an insurance policy and protect yourself.

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  • I was looking at my insurance policy and wondered exactly what it all meant, because there was some confusing things on it.

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  • If you have your license and buy a car, it is required by law to have an insurance policy in case you experience certain problems with the vehicle such as an accident or theft.

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